Sri Lanka Negotiating to Extend $1 Billion Credit Line from India & IMF Loan Approval
Posted on March 8th, 2023
Courtesy Hiru News
Sri Lanka is negotiating with India to extend a 1 billon dollar credit line by a few months, according to sources, as the island nation tries to line up funds for the rest of the year while the IMF looks set to approve a 2.9 billion dollar loan for it soon.
The credit line is due to expire on March 17 with Sri Lanka having used only about two-thirds of it, mainly for medicines and food.
The extension talks come as the economy improves and forex reserves rise for Sri Lanka.
A source at the Sri Lankan Finance Ministry said the government wanted to extend the credit line by 6 to 12 months because there was about 300 million dollars of it left unused.